When Every Hour Matters: An Analysis of Labour Cost Management and Profitability in a Retail Coffee Shop

Abstract

This study examines labour cost management and its impact on productivity and profitability in a retail coffee shop at Helsinki-Vantaa Airport. It aims to understand how staff scheduling and working hours align with customer demand and to identify related challenges, including how labour costs are managed, how staffing decisions affect profitability, and what improvements can be made. A case study approach is used, combining qualitative and quantitative methods, with data drawn from financial performance metrics, an employee survey, and semi-structured manager interviews. The financial data covers December 2025 to February 2026 and includes net sales, personnel expenses, operating margin, and labour hours, supported by concepts such as labour cost management, productivity, demand-based scheduling, and the service-profit chain. The results show that while labour cost management is based on structured planning, including forecasting and productivity targets, actual performance varies due to demand fluctuations. January shows higher labour costs relative to sales and lower productivity, indicating misalignment between staffing and demand. Survey and interview findings support this, with employees reporting higher workloads during peak hours and managers highlighting the need for operational adjustments. Despite limitations such as a short timeframe and a small sample size, the study concludes that effective labour cost management requires both careful planning and real-time responsiveness to changing demand.